Intended learning outcomes: Produce an overview on measures for motivation, qualification, and empowerment of employees as well as employee involvement (EI and quality circles. Describe concepts such as genchi genbutsu, kaizen, poka-yokero, Andon, 5S.
Just-in-time logistics comprises the measures to reduce the 3Ms and the lead time discussed in Sections 6.2.1 to 6.2.4. Beyond these, comprehensive concepts and measures will be required in the following areas:
Motivation, qualification, and empowerment of employees: In a just-in-time environment, operators’ jobs no longer include only direct productive labor, but also planning & control tasks. As a consequence, their jobs are enriched (this is best described by the term job enrichment), but the importance of training and motivation increases. In Japan, a complicated system of bonuses, public commendation, promotions, and so on supports personnel motivation. The result of this type of personnel management, rarely seen in Europe or in North America, is devotion of employees to their duties and to their companies. In the framework of JIT logistics anywhere, a Japanese way of thinking appears. This Japanese approach is summarized in brief in Figure 6.2.5.1.
| The group takes priority (the individual “disappears” within the group, e.g. in quality circles). |
| A “sense of the whole” makes conflict among different areas much less frequent than, for example, in Europe or in North America. At Toyota, for example, university graduates in all fields undergo a 2-year training program through all areas of production. |
| Employee involvement (EI) — such as in quality circles — promotes acceptance of innovations and expands the quality concept to total quality management (TQM). |
| Cultivating a problem-solving orientation, based on reality. • “gembutsu”: the real thing. • “gemba”: the place where the truth can be found (e.g., at the customer’s site, at the shop floor) • “genchi genbutsu”: go and see for yourself |
| Continual improvement involving everyone (kaizen, see Section 18.2.8) is a major element. This may be supported by a corresponding system for improvement suggestions. |
| Waste or non-value added is eliminated, and this forms the basis for increased profit. |
| Shortages and defects become visible (preferably by means of sensors), so that they can be eliminated. • In the case of defects, production stops. • Continual process improvement eliminates the causes of defects. |
| Simple, “foolproof” techniques (poka-yokero) are preferred; visual control systems (andon) are more effective than numbers and reports. For details, see Section 18.2.5. |
| Order and cleanliness improve the morale of the operators. White work uniforms are worn on the shop floor. The five Ss (see also [ASCM22]): • “seiri” (sort): separate needed items from unneeded ones and remove the latter. • “seiton” (simplify): neatly arrange items for use. • “seiso” (scrub): clean up the work area. • “seiketsu” (standardize): do first three S daily. • “shitsuke” (sustain): always follow the first four S. |
| “Even small details are important.” |
Fig. 6.2.5.1 Japanese approach (incl. continual improvement (Kaizen) and five Ss).
This kind of motivation leads ultimately to flexible capacity of the workforce through the course of time. This allows some control of fluctuations in a logistics system set up for continuous demand. There are cases where 25% of overload can be handled by “normal” overtime by employees, 25% by “special” overtime, and 50% by scheduling employees’ hours according to need.
Quality assurance is performing actions to ensure the quality of the goods:
- Quality at the source: As buffers at user sites are minimal and the order quantities correspond exactly to the demand, no faulty products may leave the producer.
- Quality circles of employees build quality consciousness and achieve the desired level of self-control of quality. They evaluate the measures set to ensure quality and the objectives achieved. Employees are thus encouraged to identify with their tasks and the quality of items that they produce and thus develop a feeling of responsibility for the products they manufacture.
- Integrated procurement and supply chain management: These are measures to reduce purchasing lead time. Suppliers are included in planning, sometimes as early as the development phase (see Section 2.3). The flow of information to suppliers includes long-term components, such as blanket orders (see Section 5.2.4), and short-term components for blanket release (see Section 6.3). To be able to issue blanket orders, the user must have reliable long-term planning for the components and work to be purchased. Suppliers are no longer selected only on the basis of the lowest prices, but also according to the criteria of delivery reliability, quality, and short delivery lead times. There is an advantage to having local suppliers (distance, strikes, etc.).
Course section 6.2: Subsections and their intended learning outcomes
6.2 The Lean Concept / Just-in-Time Concept
Intended learning outcomes: Explain lead time reduction through setup time reduction and batch size reduction as well as further concepts. Describe line balancing through harmonizing the content of work. Disclose Just-in-Time Logistics. Present generally valid advantages of the lean / Just-in-Time concept for materials management and for capacity management.
6.2.1 Setup-Friendly Production Facilities — Lead Time Reduction through Setup Time Reduction and Batch Size Reduction
Intended learning outcomes: Identify the simplest formula for operation time. Produce an overview on setup-friendly production facilities.
6.2.1b Cyclic Planning and “Heijunka” — Lead Time Reduction through Setup Time Reduction and Batch Size Reduction
Intended learning outcomes: Present in detail cyclic production planning and leveling of the production (“heijunka”).
6.2.1c Reduction of Variants, Modular Product Concept, Single-Minute Exchange of Dies (SMED) — Lead Time Reduction through Setup Time Reduction and Batch Size Reduction
Intended learning outcomes: Describe harmonizing the product range through reduction of variants and a modular product concept. Explain single-minute exchange of dies (SMED).
6.2.2 Production Segmentation, or Manufacturing Segmentation — Lead Time Reduction Through Adaptation of the Production Infrastructure
Intended learning outcomes: Produce an overview on production or manufacturing segmentation.
6.2.2b Cellular Manufacturing and One-Piece Flow — Lead Time Reduction Through Adaptation of the Production Infrastructure
Intended learning outcomes: Explain cellular manufacturing, one-piece flow, and the formula for lead-time calculation with cellular manufacturing.
6.2.3 Standardizing the Production Infrastructure, Flexible Capacities, Structuring Assembly Processes, Complete Processing, Point-of-Use Inventory, Point-of-Use Delivery — Further Concepts of Lead Time Reduction
Intended learning outcomes: Disclose the effect of standardizing the production infrastructure and of flexible capacity. Describe structuring assembly processes and complete processing. Identify point-of-use inventory and point-of-use delivery.
6.2.4 Line Balancing — Harmonizing the Content of Work
Intended learning outcomes: Identify how tasks of the same duration at each production structure level result in a rhythmic flow of goods. Explain why the various operations at a workstation (for all the products) as well as the various operations for a single product should be of the same approximate duration.
6.2.4b Line Balancing — Changing Lead Time of Operations
Intended learning outcomes: Produce an overview on measures for changing lead time of operations.
6.2.5 Just-in-Time Logistics: Quality Circles, TQM, Genchi Genbutsu, Kaizen, Poka-Yokero, Andon, 5S, and Others
Intended learning outcomes: Produce an overview on measures for motivation, qualification, and empowerment of employees as well as employee involvement (EI and quality circles. Describe concepts such as genchi genbutsu, kaizen, poka-yokero, Andon, 5S.
6.2.6 Generally Valid Advantages of the Lean / Just-in-Time Concept for Materials Management
Intended learning outcomes: Describe the effect of forecast errors through the combining of requirements in batches across many production structure levels. Explain the effect of longer and shorter lead time on the (customer) order penetration point.
6.2.7 Generally Valid Advantages of the Lean / Just-in-Time Concept for Capacity Management
Intended learning outcomes: Explain how the lean /JIT concept reduces queue time. Describe how the lean /JIT concept allows for simpler control techniques.
